Good day, ladies and gentlemen, thank you for standing by. Welcome to the Q3 2014 American Assets Trust Earnings Conference Call with Adam Wyll. My name is Marie and I will be your operator for today. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference call is being recorded. But now I would now like to hand it over to your host. Over to you now, Adam.

I'd like to thank everyone for joining us today for American Assets Trust third quarter 2014 earnings conference call. Joining me on the call are Ernest Rady, John Chamberlain and Bob Barton. These and other members of our management team are available to take your questions at the conclusion of our prepared remarks. Also please note that certain of our executives have a flight to catch to NAREIT today, we will have a hard stop at the top of the hour 9 am Pacific time for our remarks and questions and answers. Our third quarter 2014 supplemental disclosure packet provides a significant amount of valuable information with respect to the Company’s operating and financial performance. The document is currently available on our Web site. Certain matters discussed on this call may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any annualized or projected information, as well as statements referring to expected or anticipated events or results. Although we believe the expectations reflected in such forward-looking statements are based on reasonable assumptions, our future operations and our actual performance may differ materially from the information contained in our forward-looking statements and we can give no assurance that these expectations will be attained. Risks inherent in these assumptions include, but are not limited to future economic conditions, including interest rates, real estate conditions and the risks and cost of construction. The earnings release and supplemental reporting package that we issued yesterday, our Annual Report filed on Form 10-K and our other financial disclosure documents provide a more in-depth discussion of Risk Factors that may affect our financial conditions and results of operations. Additionally this call will contain non-GAAP financial information including funds from operations or FFO, earnings before interest, taxes, depreciation and amortization or EBITDA and net operating income or NOI. American Assets is providing this information as a supplement to information prepared in accordance with generally accepted accounting principles. Explanations of such non-GAAP items and reconciliations to net income are contained in the Company's supplemental operating and financial data for the third quarter of 2014 furnished to the Securities and Exchange Commission and this information is available on the Company's website at www.americanassetstrust.com. I'll now turn the call over to our Executive Chairman, Ernest Rady to begin our discussion of third quarter results. Ernest?

Thanks Adam and good morning everyone, and thank you again for joining American Assets Trust third quarter 2014 earnings call. I am very pleased to report that our FFO per share has increased 8% and 4% year-over-year for the three months and nine months ended September 30, 2014 respectively. Additionally the Board elected to increase our quarterly dividend 6% to $0.2325 per share of common stock. We are delighted to be source of steady and increasing income as well as wealth creation. As Bob will describe in greater detail, we have increased our guidance for 2015 by 6% over the 2014 annual guidance midpoint. The approximately 300 million of construction we have underway in various stages is on track and on budget and we are excited about the outcome. Leasing continues at a brisk case, consistent with our previous forecast. We do not operate or decisions are not made with the view of how things will look next quarter or even the quarter after that. Our view of value creation for our shareholders is long term. Nearly four years of being public and we have continued to brew success of 20% annualized compounded total returns for our stockholders. We believe that over the next 10 years, we can produce a compound total return of 10% annually including divined. On top of that acquisitions, developments, opportunities and the recycling of equity, it was I’d like to call I think icing on the cake. Some years will come and be up and some years will be down, but on the long run, our focus will be always to keep our performance continually creating value. It’s what we’ve been for almost half the century. On behalf all of us and American Assets Trust, we thank you very much for your confidence in allowing us to manage your Company and we look forward to your continued support. Looking forward, we continue to feel confident about our assets, our momentum and our strategy for remainder of this year and into 2015. I would now like to turn it over to our President and CEO John Chamberlain. John, would you please take it from here?

Good morning and thank you Ernest. In addition to the FFO performance Ernest just mentioned, net income available to common stock holders was $6.4 million for the three months ended September 30, 2014, or $0.15 per basic and diluted share, compared to $4.2 million or $0.11 per basic and diluted share for the same period last year. Bob will provide more details on our FFO and same-store NOI shortly. Overall conditions in our core markets -- Seattle, Portland, San Francisco, San Diego and Oahu, continue to show significant signs of strength in all three of our asset classes. We expect this to continue into foreseeable future. In San Diego Phase 4 of Torrey Reserve, both on track and on budget is still anticipated to be complete in April of 2015. Building 6 is 100% leased. Buildings 4 and 5 are experiencing considerable tenant interest with a recently executed letter of intent for all of Building 4. Our photovoltaic or solar panel installation completed and attached to the grid on July 21st, now generates approximately 800,000 kilowatt hours of electricity annually, enough to power over 1,800 light bulbs per day. The final steps are still taking place in the building permitting process for Sorrento Point, our approximate 90,000 square feet two building complex across the freeway from Torrey Reserve. Grading is now anticipated to commence in the first quarter of 2015. Also in San Diego, at Carmel Mountain Plaza, deliveries of the two out parcel buildings to their respective tenants Verizon and Jarrod's is anticipated later this month with the rent commencing in early 2015. In Bellevue, Washington, our tenant VMware took occupancy of their 17,000 square foot premises in September. Our 493,000 square foot building is now 97.9% leased. In Portland, Oregon, construction continues on our Hassalo on 8th project.…

Thank you, John and good morning everyone. Last night we reported third quarter 2014 FFO of $0.42 per share. Net income attributable to common stockholders was $0.15 per share for the third quarter. Company’s Board of Directors has declared a dividend on its common stock of $0.2325 per share for the quarterly period ending December 31, 2014. The $0.125 dividend increase represents approximately a 6% increase in the quarterly dividend rate. For the third quarter, our dividend payout ratio was approximately 67% of AFFO or FAD. Our target payout ratio is approximately 85% of AFFO or FAD. We believe that our high quality portfolio, combined with strong operating results and solid balance sheet management will allow us to continue to grow our dividend for years to come. American Assets had a solid third quarter performance. Our high quality costal west coast diversified strategy continues to have stellar performance. Our retail portfolio ended the quarter with 98.7% occupancy, combined with the highest annualized base rents amongst our peers. This occupancy is 320 basis points higher than a year ago and represents less than 40,000 square feet of vacancy in the 3 million plus square foot retail portfolio. Our office portfolio ended the quarter at approximately 89.9% occupancy as we expected. Total office vacancy represents approximately 267,000 square feet in a 2.6 million square foot office portfolio approximately 66% of the vacancy relates to our development projects at Torrey Reserve campus and the Lloyd District portfolio due to tenants that have been impacted ongoing construction activity. For this reason, we continue to exclude these two projects from same-store NOI metrics. The Tax and Treasury Administration based at our First & Main building in Portland, Oregon represents approximately 20% of the vacancy and is consistent with our expectations from our initial underwriting when…

Thank you. (Operator Instructions) And our first question comes from the line of Mitch Germain of JMP Securities. Please proceed.

So, the original mixed use guidance was about a year ago for 2014 was 5%. Now it's flat. Bob, just remind me the ins and outs that kind of gets us from 5% to flat.

Yes, not only it’s the refresh but it was also the expectation of our average daily rate and during that refresh point in time. So we were hopeful that we would get 5%. That was the input from our folks at Outrigger and during the year that just flattened out. So we expect to see that grow in 2015.

So basically the rate got impacted by the refresh. Is that a better way to look at it?

That’s a better way to look at it.

Okay, great. And then, John, with regards to your comments on acquisitions, I guess we all kind of know where pricing is in the markets. I'm curious where are your bids relative to where assets are trading?

There are very few assets that we’ve actually made bids on. We’ve tracked properties. We’ve underwritten them. We’re provided feedback from the broker regarding where pricing is coming in on assets and at that point generally we just pass.

Okay, great. Remind me about Foodland. Is that still vacant at this point?

No, it’s actually never been vacant. It was a subtenant of Foodland. It’s now a month to month tenant with us. We are continuing to evaluate our different options with the property. We have not made a decision at this point as to which way we may go. It could be simply re-tenanting and it could be repositioning. That’s something that’s under evaluation right now.

Great. And last one for me, the Tax and Treasury space. I know that, I was under the impression that you guys were marketing it as 70, it looks like now it’s 50,000. I guess; A, it looks like there may be more demand in the market for 50; and that maybe, B, how much downtime was in your original underwriting?

In our original underwriting we left out the 70,000 square feet for the entire year.

Okay. And then with regards to kind of tenants in 50 versus 70, is there more demand for that sort of size, or is the plan just to multitenant the entire space?

Well, if we had our brothers we would lease it at three different tenants or four different tenants. Going multi-tenant is a better end result for us than having one big tenant especially when it comes to turnover.

Mitch, we have Jim Durfey leads up our Office Leasing. Jim maybe you can shade some light on the marketplace you’re seeing up there.

Sure. Good morning Mitch. We’ve got about 53,000 square feet left in the First & Main building. Of which about 28,000 fees were insurance negotiations to lease. When we complete that process we’ll have one full floor of 21,000 feet plus another 4,700 and that will be the end of it. So the market has improved markedly. We see a lot of activity up there. We have a number of prospects in the 25,000 to 50,000 square foot range that are marching around Portland. So we’re optimistic that we’re going to do this 28,000 foot deal and it kick off another full quarter tenant here in next few months.

Okay, thank you. And now I’d like to turn the call over to Ernest Rady, Executive Chairman, for closing remarks.

Thanks very much for your interest. We hate to cut this short because we’re on our way to NAREIT and we’ll look forward to seeing many of you there who couldn’t be on the call. But we’re optimistic about the future and we’re proud of the past. So thanks for staying with us. And we look forward to next decade.

Thank you. Ladies and gentlemen, that concludes your conference call for today. Thank you for joining us. You may now disconnect. Thank you.